To use a property manager?

Viewing 6 posts - 1 through 6 (of 6 total)

hudson66
Member
@hudson66
Join Date: 2004
Post Count: 26
May 31, 2004 - 12:01 pm
I’m buying IP#2. located QLD where I cannot easily visit.
The property comes (compulsorily) with it’s own tenants for next 10 months. But I can choose my own PM or not bother.
Existing PM/ RE company appears to do little work when it comes to selling property, however tenancy agreement seems OK, & I believe the tenants to be reliable payers.
I can acheive +ve CF without the PM; which is important to IP exercise. Should I PM it myself??
Hudz
[juggle]
Celivia
Participant
@celivia
Join Date: 2003
Post Count: 886
May 31, 2004 - 12:12 pm
Hello Hudson!
Well… personally I wouldn’t dream of managing it myself, especially if I couldn’t easily visit it!
What will you do if the tenants stop paying rent?
And wouldn’t it be a hassle to organise all repairs and maintenance from a distance?
Who is gonna do your inspection reports?
I think that a good PM is invaluable.
Others will have more to say about this.
Derek
Member
@derek
Join Date: 2004
Post Count: 3,544
May 31, 2004 - 12:23 pm
Hi Hudson,
I am in agreement with Celivia – yes you pay for the PM services but for me that is ‘cheap’ compared to the costs involved should something go awry.
I tend to suggest you are better off using your energy on researching the market and looking for the next property.
Derek
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Property Investment Support Available. Ongoing and never stopping. PM welcome.
hudson66
Member
@hudson66
Join Date: 2004
Post Count: 26
May 31, 2004 - 12:37 pm
Thanks Celivia & Derek for your responses. It is so great of you to offer an opinion so quickly.
Maintenance is not a big issue, I’ve already located trades in that area.
BUT the non-payment & finding new tenants issues are big ones for thought.
Hoped there might be others out there with some experience in solving those issues..?
Derek re; your post from 27/5 listing KPIs for PMs. I think that will be a big help.
Thanks again
Hudz
jdylan
Member
@jdylan
Join Date: 2004
Post Count: 8
June 1, 2004 - 2:51 am
If you want to find out how good your future tenants are you should ask for a rental ledger to see if they have ever paid late or if they are super keen like some tenants I know and pay well in advance. Secondly a excellent property manager who does their job properly, is the most invaluable tool you can have. They can achieve good rental results, shorter vacancy periods, and keep your property in sound condition so that when you wish to sell it, there shouldn’t be any problems. How do you know a goood property manager you ask? They have to have good knowledge of their industry, fantastic communication and most importantly you have to feel comfortable with them.
So if I were you and found a good one, I’d go with them. Especially living so far away.
J Dylan
thecrest
Participant
@thecrest
Join Date: 2004
Post Count: 992
June 1, 2004 - 1:33 pm
Been a PM myself, not the greatest job in the world, but IMHO definately the fastest hardest school there is. Suggest you ask for the complete file on all matters relating to the property and the current tenants, including all correspondence to and from, maintenance done, repairs, yes rent record already mentioned is a must, and ask the PM for an opinion of the property as a rental, pros & cons, suggestions etc. might help to get a feel for the PM’s management style. You already know it’s not practical to manage it at a distance yourself, so crank up the PM, get them onside and hope they’ve got the skills. If not, find another one.
good luck [biggrin]
cheers
thecrest
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